Silicon Valley Bank
Silicon Valley Bank (SVB) was a state-chartered commercial bank headquartered in Santa Clara, California. It operated branches in California and Massachusetts[4][3] and was the largest bank by deposits in Silicon Valley.[5] The bank was part of SVB Financial Group, a publicly traded bank holding company that had offices in 13 other U.S. states and over a dozen international jurisdictions.[3][6][7]
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 Headquarters in Santa Clara | |
| Industry | Financial services |
|---|---|
| Founded | October 17, 1983[1] |
| Founders |
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| Defunct | March 10, 2023 |
| Fate | Failed after a bank run on its deposits and taken into receivership by the Federal Deposit Insurance Corporation |
| Successor |
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| Headquarters | , U.S. |
Key people |
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| Parent | SVB Financial Group  |
| Capital ratio | Tier 1 15.26% (2022) |
| Website | svb |
| Footnotes / references [3] | |
SVB was a leading financial institution that catered to almost half of all venture-backed tech startups.[8] However, due to a series of central bank-endorsed interest rate hikes[9][10] in the face of global inflation,[11][12] there was a run on its deposits, which ultimately led to its failure on March 10, 2023.[13] In response, the California Department of Financial Protection and Innovation (DFPI), which was its regulator, seized the bank and placed it into the receivership under the Federal Deposit Insurance Corporation (FDIC).[3][14] This marked the second-largest bank failure in U.S. history.[15][16]
On March 12, 2023, a joint statement was issued by Secretary of the Treasury Janet Yellen, Federal Reserve Chairman Jerome Powell, and FDIC Chairman Martin Gruenberg, stating that all depositors at SVB would be fully protected and would have access to both insured and uninsured deposits starting the following Monday, March 13.[17][18] The FDIC then established a newly-created successor called Silicon Valley Bridge Bank, N.A., which operated as a bridge bank and assumed ongoing business.[14][19]